When oil hit 60, we had 3,60 gas, now oil hits 100 and we have 2,85 gas?

Question

I don't get it, since about 4 month, gas prices do not fluctuate with the price of oil anymore. What happen? It used to be, that the oil companies used any rise in oil prices immidiatly as an excsue to raise gas prices. Is that a political scheme to support Bush?

Answer 1

I'm glad some one else noticed. The oil companies found the public "breaking point " at three bucks using whatever excuses were available (I'm still laughing over the Katrina theory. Gas went up then went down. Natural gas, on the hand, went up "due to Katrina" and never went down. In fact, it's going to go up this winter. I must have missed "Katrina II".) Their profits are at a record high and they're not willing to push their luck anymore. With the current presidential race going a desperate candidate may actually initiate a real investigation into the manipulation of oil prices and then where would they be?

Answer 2

The price differences had less to do with the actual price of oil. The supply of oil was much less because Katrina impacted our refining process and made the amount of oil available to the US much less. You then plug in the supply and demand equation and thats why it was so expensive. And oil hasnt hit $100 yet, just wait about a month or so.

Answer 3

All this proves is that oil prices are not determined by "market conditions" - oil prices are determined by what the oil companies think the public will pay without raising all kinds of hell. The oil companies have pretty much determined that $4.00 a gallon will be the breaking point when consumers finally reach their levels of intolerance.
Oil companies have made BILLIONS in excess profits in the past seven years thanks to two OIL men in the White House. It's time for someone to have the balls to step up and say, "Stop scamming the American motorists." But that's not going to come from any Republican or Democratic Presidential candidate. -RKO- 10/31/07

Answer 4

It has to do with supply and demand. The summer driving season is over. Katrina plays a big part in the higher price. And the lack of hurricanes this year also is a factor.

Answer 5

It hit $3.60 post Katrina. The price wasn't due to the cost of oil, it was due to the fact that almost a third of our refineries were knocked off-line for a month or two.